Labor Force Statistics from the Current Population Survey

Labor Force Characteristics of Foreign-born Workers News Release

For release 10:00 a.m. (EDT) Friday, March 19, 2010 USDL-10-0319
Technical information: (202) 691-6378 * cpsinfo@bls.gov * www.bls.gov/cps
Media contact: (202) 691-5902 * PressOffice@bls.gov
FOREIGN-BORN WORKERS: LABOR FORCE CHARACTERISTICS -- 2009
The share of the U.S. labor force composed of the foreign born was
little changed in 2009, and their unemployment rate rose from 5.8
to 9.7 percent, the U.S. Bureau of Labor Statistics reported today.
The jobless rate of the native born increased from 5.8 percent in
2008 to 9.2 percent in 2009.
This news release compares the labor force characteristics of the for-
eign born with those of their native-born counterparts. The data on na-
tivity are collected as part of the Current Population Survey (CPS), a
monthly sample survey of approximately 60,000 households. The foreign
born are persons who reside in the United States but who were born out-
side the country or one of its outlying areas to parents who were not
U.S. citizens. The foreign born include legally-admitted immigrants,
refugees, temporary residents such as students and temporary workers,
and undocumented immigrants. The survey data, however, do not separate-
ly identify the numbers of persons in these categories. For further in-
formation about the survey, see the Technical Note.
Some highlights from the 2009 data are:
-- Both the number of foreign-born labor force participants (23.9
million) and their share of the U.S. civilian labor force (15.5
percent) were little changed in 2009 for the second year in a
row.
-- The unemployment rate of the foreign born (9.7 percent) was
higher than that of the native born (9.2 percent) for the first
time since 2003.
-- In 2009, the median usual weekly earnings of foreign-born full-
time wage and salary workers were 79.1 percent of those of their
native-born counterparts.
-- Hispanics accounted for 50.1 percent of the foreign-born labor
force, and another 22.3 percent was Asian.
-- The number of foreign-born white non-Hispanics in the labor force
declined, while the number of foreign born in the other major
race and ethnicity groups showed little change.
Demographic Characteristics
In 2009, men made up a larger proportion of the foreign-born labor force
(59.3 percent) than they did of the native-born labor force (52.2 per-
cent). The proportion of the foreign-born labor force made up of 25- to
54-year-olds was higher than for their native-born counterparts (76.7
and 65.6 percent, respectively); labor force participation is typically
highest among persons in that age bracket. (See table 1.)
Hispanics comprised 50.1 percent of the foreign-born labor force in
2009, compared with 8.0 percent of the native-born labor force. Asians
made up 22.3 percent of the foreign-born labor force, compared with
1.3 percent of the native-born labor force. (Data in this release for
persons who are white, black, or Asian do not include those of
Hispanic or Latino ethnicity. Data on persons of Hispanic or Latino
ethnicity are presented separately.)
In 2009, 26.7 percent of the foreign-born labor force 25 years old and
over had not completed high school, compared with 5.7 percent of the
native-born labor force. Similar proportions of foreign-born and na-
tive-born persons in the labor force had a bachelor's or higher degree
(31.8 and 34.9 percent, respectively). Foreign-born workers were less
likely than native-born workers to have some college or an associate
degree--17.0 versus 29.8 percent.
Labor Force and Unemployment
In 2009, 67.9 percent of the foreign born were in the labor force, lit-
tle changed from 2008. Over the year, the labor force participation
rate of native-born workers fell by 0.7 percentage point to 64.9 per-
cent. In 2009, both the number of foreign-born labor force participants
(23.9 million) and their share of the U.S. civilian labor force
(15.5 percent) were little changed for the second year in a row, after
increasing steadily from 1996 to 2007. (See table 1.)
The labor force participation rate of foreign-born men was 80.5 percent
in 2009, compared with 70.4 percent for native-born men. Among women,
55.4 percent of foreign-born women were labor force participants, com-
pared with 59.8 percent of native-born women.
Among the major race and ethnicity groups, labor force participation
rates of foreign-born whites (59.8 percent), blacks (72.4 percent),
and Asians (67.7 percent) were down over the year. The rate for for-
eign-born Hispanics (70.8 percent) was little changed in 2009. Among
the native born, labor force participation rates for all the major
race and ethnicity groups fell over the year.
In 2009, foreign-born mothers with children under age 18 were less
likely to be labor force participants than native-born mothers--61.2
versus 74.0 percent. Among women with children under age 3, the par-
ticipation rate for the foreign born was 45.8 percent, while that for
the native born was 64.9 percent. The labor force participation rate
of both foreign- and native-born fathers with children under age 18
was about 94 percent. (See table 2.)
The over-the-year increase in the unemployment rate of foreign-born
workers--from 5.8 percent in 2008 to 9.7 percent in 2009--reflected
increases in the rates for both men and women. The unemployment rate
for foreign-born men rose from 5.7 to 10.0 percent, and the rate for
foreign-born women was up from 6.0 to 9.2 percent. Among the native
born, the unemployment rate increased from 5.8 to 9.2 percent over
the year. The rate for men rose from 6.2 to 10.3 percent, while the
rate for women was up from 5.3 to 7.9 percent. (See table 1.)
By region, the foreign born made up a larger share of the labor force
in 2009 in the West (23.8 percent) and in the Northeast (17.9 percent)
than for the nation as a whole (15.5 percent). In contrast, the foreign
born made up a smaller share of the labor force than for the nation
in the South (13.8 percent) and Midwest (7.7 percent). (See table 6.)
Occupation
In 2009, foreign-born workers were more likely than native-born workers
to be employed in service occupations (24.7 versus 16.3 percent); in
production, transportation, and material moving occupations (15.8 ver-
sus 10.6 percent); and in natural resources, construction, and mainte-
nance occupations (13.5 versus 8.8 percent). Native-born workers were
more likely than foreign-born workers to be employed in management,
professional, and related occupations--38.9 versus 28.9 percent. (See
table 4.)
Foreign-born men were more likely than native-born men to be employed
in natural resources, construction, and maintenance occupations; pro-
duction, transportation, material moving occupations; and in service
occupations. Compared with native-born women, foreign-born women were
more likely to be employed in service occupations and in production,
transportation, and material moving occupations.
Earnings
In 2009, the median usual weekly earnings of foreign-born full-time
wage and salary workers were $602, compared with $761 for the native
born. Among men, median earnings for the foreign born were $620 per
week, while the native born earned $864 per week. The median usual
weekly earnings for foreign-born women were $567, compared with $670
for native-born women. (See table 5.)
As with the native born, the earnings of foreign-born workers increased
with education. Foreign-born workers age 25 and over with less than
a high school education earned $415 per week in 2009, while those with
bachelor's degrees and higher earned about 2.7 times as much--$1,129
per week.
The gap between the earnings of foreign-born and native-born workers
narrows with higher levels of education. Among those with less than a
high school diploma in 2009, full-time workers who were foreign born
earned 83.3 percent as much as their native-born counterparts. Among
those with a bachelor's degree and higher, foreign-born workers earned
almost as much (99.2 percent) as native-born workers.

Technical Note
The estimates in this release are based on annual average data from the
Current Population Survey (CPS). The CPS, which is conducted by the U.S.
Census Bureau for the Bureau of Labor Statistics (BLS), is a monthly survey
of about 60,000 households that provides information on the labor force
status, demographics, and other characteristics of the nation's civilian
noninstitutional population age 16 and over. In response to the increased
demand for statistical information about the foreign born, questions on
nativity, citizenship, year of entry into the United States, and the
parental nativity of respondents were added to the CPS beginning in January
1994. Prior to 1994, the primary sources of data on the foreign born were
the decennial census, two CPS supplements (conducted in April 1983 and
November 1989), and, to some extent, information collected by the U.S.
Citizenship and Immigration Services (formerly known as the Immigration and
Naturalization Service).
The foreign- and native-born data for 2009 are not strictly comparable
with data for 2008 and earlier years because of the introduction in January
2009 of revised population controls used in the CPS. The effect of the
revised population controls on the foreign- and native-born estimates is
unknown. However, the effect of the new controls on the monthly CPS
estimates was to decrease the December 2008 employment level by 407,000 and
the unemployment level by 42,000. The new population controls had a
negligible impact on unemployment rates and other percentage estimates.
More detailed information on the population adjustments and their effect on
national labor force estimates are available at www.bls.gov/cps/cps09adj.pdf.
Information in this release will be made available to sensory impaired
individuals upon request. Voice phone: (202) 691-5200, Federal Relay
Service: (800) 877-8339.
Reliability of the estimates
Statistics based on the CPS are subject to both sampling and nonsampling
error. When a sample, rather than the entire population, is surveyed,
there is a chance that the sample estimates may differ from the "true"
population values they represent. The exact difference, or sampling error,
varies depending upon the particular sample selected, and this variability
is measured by the standard error of the estimate. There is about a 90-
percent chance, or level of confidence, that an estimate based on a sample
will differ by no more than 1.6 standard errors from the "true" population
value because of sampling error. BLS analyses are generally conducted at
the 90-percent level of confidence.
The CPS data also are affected by nonsampling error. Nonsampling error
can occur for many reasons, including the failure to sample a segment of
the population, inability to obtain information for all respondents in the
sample, in ability or unwillingness of respondents to provide correct
information and errors made in the collection or processing of the data.
For a full discussion of the reliability of data from the CPS and
information on estimating standard errors, see the Household Data section
of the "Explanatory Notes and Estimates of Error" from Employment and
Earnings Online at www.bls.gov/cps/eetech_methods.pdf.
Concepts and definitions
Foreign born. The foreign born are persons residing in the United
States who were not U.S. citizens at birth. That is, they were born
outside the United States or one of its outlying areas such as Puerto Rico
or Guam, to parents neither of whom was a U.S. citizen. The foreign-born
population includes legally-admitted immigrants, refugees, temporary
residents such as students and temporary workers, and undocumented
immigrants. The survey data, however, do not separately identify the
number of persons in these categories.
Native born. The native born are persons born in the United States or
one of its outlying areas such as Puerto Rico or Guam or who were born
abroad of at least one parent who was a U.S. citizen.
Race and ethnicity groups. In this release, the data are presented for
non-Hispanic whites, blacks, and Asians and for persons of Hispanic or
Latino ethnicity. These four groups are mutually exclusive but not
exhaustive. Other race groups (including persons who selected more than
one race category) are included in the overall totals but are not shown
separately because the number of survey respondents is too small to develop
statistically reliable estimates. The presentation of the data on race and
ethnicity in this release differs from that which appears in most analyses
of CPS labor force data because persons of Hispanic or Latino ethnicity are
separated from the race groups. Because persons of Hispanic or Latino
ethnicity can be of any race, they are usually included in the race groups
as well as shown separately in the Hispanic or Latino ethnicity group. The
reason for the difference in the data presentation in this release is
because about half of the foreign born are of Hispanic or Latino ethnicity
and they have somewhat different labor force characteristics than the non-
Hispanic foreign born.
Employed. Employed persons are (a) all those who, during the survey
reference week, did any work at all as paid employees, worked in their own
business, profession, or on their own farm, or who worked 15 hours or more
as unpaid workers in a family-operated enterprise; and (b) all those who
did not work but had jobs or businesses from which they were temporarily
absent due to illness, bad weather, vacation, childcare problems, labor
disputes, or personal reasons, whether or not they were paid for the time
off and whether or not they were seeking other jobs.
Unemployed. The unemployed are persons who had no employment during the
reference week, were available for work at that time, except for temporary
illness, and had made specific efforts to find employment sometime during
the 4-week period ending with the reference week. Persons who were waiting
to be recalled to a job from which they had been laid off need not be
looking for work to be classified as unemployed.
Civilian labor force. The civilian labor force comprises all persons
classified as employed or unemployed.
Unemployment rate. The unemployment rate is the number unemployed as a
percent of the civilian labor force.
Labor force participation rate. The labor force participation rate is
the labor force as a percent of the population.
Usual weekly earnings. Data represent earnings before taxes and other
deductions and include any overtime pay, commissions, or tips usually
received (at the main job in the case of multiple jobholders). Earnings
reported on a basis other than weekly are converted to a weekly equivalent.
Median earnings. The median is the amount which divides a given
earnings distribution into two equal groups, one having earnings above the
median and the other having earnings below the median.